CDCS - Certificate of Documentary Credit Specialist

What is CDCS?

CDCS - Certificated Documentary Credit Specialist is ....

What, When, Where, Why & How of CDCS - Certificate of Documentary Credit Specialist

Topics of Importance

• Documentary credits - types, characteristics & uses, including standby credits
• Rules and trade terms, including UCP 600, ISP 98, ISBP 745, Incoterms 2010 & URR 725
• Parties to documentary credit transactions and their roles and obligations 
• Types and method of payment/ credit used in documentary credit transactions, including the concept of autonomy.
• Types of transport, commercial and financial documents used in documentary credit transactions 
• Risk issues, including types of risks, control and possible mitigations
• Related products, including letters of indemnity air way releases and steamship guarantees.
• Implications of breaching rules including money laundering and terrorist financing

Copenhagen Climate Summit

Does the Copenhagen summit has to do anything with us ?



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Has Recession slowed the profits to International Trade?

Hows much has Recession slowed the profits to International Trade? How long do you think would be the impact? What steps needs to be taken when it comes to major exporting countries to boost up exports?



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DOING BUSINESS IN INDIA

* India: the second fastest growing market in Asia * Brief Profile & Key Economic Indicators * U.S. – India Trade * Did you know that India... * Indian Heritage - Concepts & Values to Know * Business Etiquette * Market Entry * Important Websites * To Contact Us
India: the second fastest growing market in Asia
The Indian market with its one billion plus population, presents lucrative and diverse opportunities for U.S. exporters with the right products, services, and commitment. India’s requirements for equipments and services for major sectors such as energy, environmental, healthcare, high-tech, infrastructure, transportation, and defense will exceed tens of billions of dollars in the mid-term as the Indian economy further globalizes and expands. India’s GDP, growing at 8.7% (for 2007-08), makes it one of the fastest growing economies in the world and the second fastest in Asia. India has potential for a sustained growth of 8-10% for the next couple of years. Now is the time for U.S. companies to enter the rising Indian market.Brief Profile & Key Economic Indicators
Official Name: Republic of India
Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan
Population: 1.13 billion
Languages: Hindi (national language primary tongue of 30% of population); English enjoys associate status but is the most important language for national, political, and commercial communications
Currency: Indian Rupee (Rs)
Capital City: New Delhi
Financial Center: Mumbai (formerly known as Bombay)
GDP: $1.16 trillion
Per Capita (PPP): $4,139 (2007-08) U.S. – India Trade
* Total Trade (2007): $41.6 billion * U.S. Exports to India (2007): $17.5 billion, a 75 percent increase from the previous year * Imports from India (2007): $24.1 billion, a 10 percent increase from the previous year
Did you know that India...
- is the world's second largest small car market
- is one of only three countries that makes its own supercomputers
- is the fourth largest economy in the world (measured in terms of purchasing power parity)
- is one of six countries that launches its own satellites
- 100 of the Fortune 500 have R & D facilities in India
- has the second largest group of software developers after the U.S.
- lists 6,600 companies on the Bombay Stock Exchange; only the NYSE has more
- is the world's largest producer of milk, and second largest producer of food, including fruits and vegetables
- sends more students to the U.S. colleges than any other country in the world. In 2007, over 84,000 Indian students enrolled in the U.S.
- Indian pharmaceutical industry is the world's second largest after China
More on India.....1Indian Heritage - Concepts & Values to Know
In a diverse and complex country like India, it’s difficult to impart generic conclusions that could be used by those wanting to do business here. Regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behavior, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed.
Unlike western societies, in India religion, fatalism and collectivism are all components of daily life and they need to be respected for a healthy and successful business relationships. Despite the traditional caste system being dismantled, remnants may still be witnessed in the Indian hierarchical structure of business practices and decision-making. There is a strong sense of tradition tied into daily business practices. Yet, signs of change are becoming more evident. Ever since the economic reforms began in 1991, India’s market is growing rapidly. With its geographical positioning in the Indian Ocean, a major international trade route, and with its rich mineral and agricultural resources, India’s economy is witnessing increased inflows of foreign investments. India is also recognized for its competitive education system and vast pool of highly skilled laborers, making it an attractive market for foreign businesses.
No matter what the industry is, foreign businesses should expect some degree of differences in business norms in India. Included below are some basic business etiquettes that the U.S. companies should follow when developing and maintaining relationship with Indian businesses.Business Etiquette
* Do use titles to address your Indian counterparts, such as “Professor” or “Doctor”. If he/she does not have a title, use “Mr”, “Mrs”, or “Miss”. * Do wait for a female business colleague to initiate a greeting whether it is verbal or physical. Indian men do not generally shake hands with women out of respect. * Do remain polite and honest at all times in order to prove that your objectives are sincere. * Don't be aggressive in your business negotiations – it can be interpreted as a sign of disrespect. * Don't take large or expensive gifts as this may cause embarrassment. If you do take a gift make sure you present the gift with both hands. * Don't refuse any food or drink offered to you during business meetings as this may cause offence (sample small portions atleast). In addition, it is useful to keep in mind that traditionally, and religiously, majority of Indians are vegetarians and do not drink alcohol or smoke.
Market Entry
US India Friendship3 Key factors to doing business successfully in India include: finding good partners who have knowledge of the local market and procedural issues; good planning; aggressive due diligence and follow up; and patience and commitment.
Organisations like the U.S. Commercial Service in India offers customized solutions to help your business enter and succeed in the Indian market. Our India-wide network of trade specialists will work one-on-one with you through every step of the exporting process, helping you to:
* Target the best markets * Promote your products and services to qualified buyers * Meet the best distributors and agents for your products and services
Market Entry Strategy
* Finding partners and agents:3 New businesses must address issues of sales channels, distribution and marketing practices, pricing and labeling and protection of intellectual property. Relationships and personal meetings with the potential agents are extremely important. Due diligence is strongly recommended.
* Geographic diversity: U.S. companies, particularly small and medium-sized enterprises, should consider approaching India’s market on a local level. Good localized information is a key to success in such a large and diverse country. U.S. Commercial Service posts5 in New Delhi6, Mumbai7, Chennai8, Ahmedabad9, Bangalore10, Hyderabad11, and Calcutta12 provide indispensable local information and advice and are well plugged in with local business and economic leaders. Often multiple agents are required to serve each geographic market in the country.
* Market entry options: Options include using a subsidiary relationship, a joint venture with an Indian partner, or using a liaison, project, or branch office.
Important Websites
Indian Ministry of Commerce & IndustryCentral Board of Excise & CustomsIndian Government Website DirectoryCredit Rating Information Service of IndiaBusiness StandardEconomic TimesFinancial ExpressBusiness World(Will be posted soon)
More helpful business and government weblinks(Will be posted soon)

What are INCOTERMS?

When commercial traders enter into a contract for the purchase and sale of goods they are free to negotiate specific terms of their contract. These terms include the price, quantity, and characteristics of the goods. Every international contract will also contain what is referred to as an Incoterm (international commercial term). The Incoterm selected by the parties to the transaction will determine which party pays the cost of each segment of transport, who is responsible for loading & unloading of goods, and who bears the risk of loss at any given point during a given international shipment. Incoterms also influence Customs valuation basis of imported merchandise.Incoterms are overseen and administered by the International Chamber of Commerce in Paris and are adhered to by the major trading nations of the world. There are currently 13 Incoterms in use, and they can be considered on the basis cited above. All the current Incoterms are described below in ascending order of seller responsibility. However, Ex-works, Free on Board, Cost Insurance Freight, and Delivery Duty Paid are the most frequently used Incoterms for NextLinx’ purposes.

Group E (Departure) - Under EXW, the seller minimizes his risk by making the goods available at his factory or place of business.

ExWorks (EXW) – The seller (exporter) makes the goods available to the buyer (importer) at the seller's premises. The buyer is responsible for all transportation costs, duties, and insurance, and accepts risk of loss of goods immediately after the goods are purchased and placed outside the factory door. The ExWorks price does not include the price of loading goods onto a truck or vessel, and no allowance is made for clearing customs. If FOB is the Customs valuation basis of the goods in the country of destination, the transportation and insurance costs from the seller's premises to the port of export must be added to the ExWorks price.

Group F (Main Carriage Not Paid By Seller)

Free Alongside Ship (FAS) – The seller transports the goods from his place of business, clears the goods for export and places them alongside the vessel at the port of export, where the risk of loss shifts to the buyer. The buyer is responsible for loading the goods onto the vessel (unless specified otherwise) and for paying all costs involved in shipping the goods to the final destination.

Free Carrier (FCA) – The seller (exporter) clears the goods for export and delivers them to the carrier and place specified by the buyer. If the place chosen is the seller’s place of business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is responsible for loading the goods. Buyer assumes risk of loss from that point forward and must pay for all costs associated with transporting the goods to the final destination.

Free On Board (FOB) – The seller (exporter) is responsible for delivering the goods from his place of business and loading them onto the vessel of at the port of export as well as clearing customs in the country of export. As soon as the goods cross the “ships-rails” (the ship’s threshold) the risk of loss transfers to the buyer (importer). The buyer must pay for all transportation and insurance costs from that point, and must clear customs in the country of import. An FOB transaction will read “FOB, port of export”. For example, assuming the port of export is Boston, an FOB transaction would read “FOB Boston”. If CIF is the Customs valuation basis, international freight and insurance must be added to the FOB value.

Group C (Main Carriage Paid By Seller)

Cost & Freight (CFR) – The seller (exporter) is responsible for clearing the goods for export, delivering the goods past the ships rail at the port of shipment and paying international freight charges. The buyer assumes risk of loss once the goods cross the ship’s rail, and must purchase insurance, unload the goods, clear customs, and pay for transport to deliver the goods to their final destination. If FOB is the Customs valuation basis, the international freight costs must be deducted from the CFR price.

Cost, Insurance & Freight (CIF) – The seller (exporter) is responsible for delivering the goods onto the vessel of transport and clearing Customs in the country of export. He is also responsible for purchasing insurance, with the buyer (importer) named as the beneficiary. Risk of loss transfers to buyer as the goods cross the ship’s rail. If these goods are damaged or stolen during international transport, the buyer owns the goods and must file a claim based on insurance procured by the seller. The buyer must clear customs in the country of import and pay for all other transport and insurance in the country of import. CIF can be used as an Incoterm only when the international transport of goods is at least partially by water. If FOB is the Customs valuation basis, the international insurance and freight costs must be deducted from the CIF price. A CIF transaction will read CIF, port of destination. For example, assuming that goods are exported to the port of Los Angeles, a CIF transaction would read “CIF Los Angeles”.
Carriage Paid To (CPT) – The seller (exporter) clears the goods for export, delivers them to the carrier and is responsible for carriage costs to the named place of destination. Risk of loss transfers to buyer once the goods are transferred to the carrier and the buyer must insure the goods from that time on. If FOB is the Customs valuation basis, the international freight cost must be deducted from the CPT price.

Carriage and Insurance Paid To (CIP) – The seller transports the goods to the port of export, clears Customs, and delivers them to the carrier. From that point risk of loss shifts to the buyer. Seller is responsible for carriage and insurance costs to the named place of destination. The buyer is responsible for all costs, and bears risk of loss from that point forward. If FOB is the Customs valuation basis, international freight and insurance costs need to be deducted from the CIP price.

Group D (Arrival)

Delivered at Frontier (DAF) - The seller (exporter) is responsible for all costs involved in delivering the goods to the named point and place at the frontier. Risk of loss transfers at the frontier. The buyer must pay the costs and bear the risk of unloading the goods, clearing Customs, and transporting the goods to the final destination. If FOB is the Customs valuation basis, the international insurance and freight costs must be deducted from the DAF price.

Delivered Ex-Ship (DES) - The seller (exporter) is responsible for all costs involved in delivering the goods to a named port of destination. Upon arrival, the goods are made available to the buyer (importer) on-board the vessel. Therefore, the seller is responsible for all costs/risk of loss prior to unloading at the port of destination. The buyer (importer) must have the goods unloaded, pay duties, clear Customs and provide inland transportation & insurance to the final destination.

Delivered Ex-Quay (DEQ) – The seller (exporter) is responsible for all costs involved in transporting the goods to the wharf (quay) at the port of destination. The buyer must pay duties, clear Customs, and pay the cost/bear the risk of loss from that point forward. If FOB is the Customs valuation basis, the international insurance and freight costs, in addition to unloading costs, must be deducted from the DEQ price.

Delivered Duty Unpaid (DDU) - The seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination where the goods are placed at the disposal of the buyer. The buyer (importer) assumes risk of loss at that point and must clear Customs and pay duties and provide inland transportation & insurance to the final destination.

Delivered Duty Paid (DDP) – The seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination and for clearing Customs in the country of import. Under a DDP Incoterm, the seller provides literally door-to-door delivery, including Customs clearance in the port of export and the port of destination. Thus the seller bears the entire risk of loss until goods are delivered to the buyer’s premises. A DDP transaction will read “DDP named place of destination”. For example, assuming goods imported through Baltimore are delivered to Silver Spring, the Incoterm would read “DDP, Silver Spring”. If CIF is the Customs valuation basis, the costs of unloading the vessel, clearing Customs, and delivery to the buyer’s premises in the country of destination including inland insurance, must be deducted to arrive at the CIF value.

Exporting is Good for Your Bottom Line - Why Consider Exporting?

* There is no better time to export. Free trade agreements, together with ease of transportation, the Internet, and U.S. Government programs and partnerships continue to simplify the export process.
* More than 70 percent of the world’s purchasing power—and 95 percent of its population are beyond U.S. borders. So if a U.S. business is only selling domestically, they are reaching just a small share of potential customers.
* If your company is not exporting, it’s highly likely your competitors are or will be selling internationally. Exporting enables companies to diversify their portfolios and weather changes in the marketplace, and to grow and become more competitive.
* Free trade agreements have opened up in such markets in Australia, Chile, Singapore, Jordan, Israel, Canada and Mexico, and Central America, creating more opportunities for U.S. businesses.
The Economic Impact of Exporting
* During the past 25 years, U.S. exports have made an important contribution to our country’s economic growth—increasing five-fold from $224 billion to more than $1.4 trillion in 2006.
* Small businesses and entrepreneurs play a key role in global trade. The Small Business Administration reports that small firms exported a record $375 billion in 2006—or more than $1 billion a day. This export growth was three times as fast as the overall economy.
* U.S. exports support millions of American jobs. About 17 percent of all jobs in America's manufacturing sector depends on exports. Workers in jobs supported by merchandise exports typically receive wages higher than the national average.
* Small businesses create 70 percent of the new jobs in America. It is important to help these firms increase their exports.
Smaller Companies Have Vast Untapped Export Potential
* Small and medium-sized companies account for 96 percent of U.S. exporters, but still represent less than one-third of the total export value of U.S. goods’ exports.
* Nearly two-thirds of all exporters only sell to one foreign market, so many of these firms could boost exports by expanding the number of countries they sell to.
* More than two-thirds of exporters have fewer than 20 employees.
U.S. Commercial Service
* The U.S. Commercial Service helps U.S. companies export and protects American business interests abroad, and operates a seamless worldwide network of offices in 109 U.S. cities and at U.S. embassies and consulates in 80 countries.
* The Commercial Service’s end-to-end export solutions helps smaller firms increase profits and lower risks. Companies can benefit from export counseling, customized market research, pre-screened business appointments abroad through the Gold Key Service, international contacts and trade leads, advocacy, trade events, and more.
* The Commercial Service is partnering with corporate organizations to further streamline the export process and build awareness of exporting opportunities for small businesses through seminars and other outreach efforts. These partnerships include FedEx, UPS, e-Bay, Dow Jones Asia, M&T Bank, PNC Bank, and others.
* The U.S. Department of Commerce’s Export Achievement Certificate recognizes companies that have benefited from the Department’s U.S. Commercial Service assistance to make their first export sale or enter new foreign markets.
* In 2006, the Commercial Service network generated nearly 12,000 export successes; facilitating billions of dollars in U.S. export sales.
* For more information, visit www.export.gov, or call the Trade Information Center at 1-800-USA- TRADe. Courtesy: The U.S. Commercial Service

How can I get in to Export Import Business?

To help you get started, I have put all this information and more right here, and is designed to get you started with the least amount of money and to have a permanent cash flow without the risk.
This document shows you...
• How to set up your business.
• How to form your business, partnership, sole trader or company.
• How to find products and track down products that your customers are looking for.
• How to find buyers and sellers.
• How we can help you get started and free government assistance.
• Important banking and foreign exchange procedures.
• Finding the right freight forwarder.
• Why the Internet is a great resource and where to look.
• Custom procedures for Importing/Exporting. What you need to know and what to avoid.
• Where to get International trade directories for free or just a few $$$.
• Discover new products and suppliers every month.
• How much money you will get paid, and how to make sure you get it.
• How to take the risk out of all your deals.
• The strategies and sample letters that show you how to get started today.
• A list of chamber of Commerce from all around the world. This is Vital to the success of your business.
• And much, much more...
We will show you step-by-step how to operate in a new world, in the world of international trade, without capital and without experience. Our Import/Export detaild report shows you what to do and how to do it, how to start and profit from your business. It is a set of actions that are very easy to understand and to apply, which you just follow step-by-step. You are not learning theory, you don't have to memorise things; all you need to do is follow instructions. Literally you could be dealing with your first clients and receiving your first cheques within weeks of ordering your Import Export course guide.
THE LIST OF PRODUCTS IS ENORMOUS
Deal in exciting import products...Everything from hi-tech electronics to fine handcrafts! Start with a choice of over 3,000 of today's best selling imports! Deal in one or many. We will show you how to import goods without even touching them, without risk or capital. Deal direct - cut the middleman, which can produce good income with the gross profits up to 1000 % or more.
Should you require any further details get in touch with me at dhanekum@gmail.com with MORE DETAILS in the subject line along with your Import-Export registration number